On the LoC topic, I think it is way better than a conventional mortgage... as long as you are accountable to yourself and your better half!
The reason why it is better is you can just pay the interest owing every month. You can choose to put more down every month or less as the cash flow coming in dictates, but even better yet is the money that is not being shoved into your house that you can not use now can be re-invested to make more than what you pay on interest. However, if you go buy a car or something dumb like that, this is not a good thing to have as you are just digging yourself further into a red hole!
If the OP went with that mortgage rate, I would say its alright. Anything under 6% is decent right now. At least use a mortgage broker cause they usually get a bit better rate discount off of prime. I would personally only get a mortgage over a LoC if only it was the only way to purchase a property.
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